Essays on Collapse of the Enron Corporation Case Study

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The paper "Collapse of the Enron Corporation" is a great example of a case study on management. This paper looks at the collapse of the Enron Corporation, a giant company trading with energy sources. The company rose in its performance after its Chief Executive Officer, Kenneth Lay, merged with the natural gas pipeline companies and the Internorth. Soon after, the government enacted deregulation in the energy industry and this led the company into selling its energy at higher prices. The new president of the Company, Jeffrey Skilling together with his team of executives started engaging in illegal accounting deals that saw deterioration in the performance of the company until it was declared bankrupt and bought at a fire price by Dynergy.

However, this scandal could have been prevented in the right accounting methods were used. This scandal was blamed on various factors such as the government's decision to deregulate the energy industry, the policy of mark-to-market that had been adopted by the corporation, and also its corporate culture that promoted illegal accounting practices. After the scandal, the government of the United States passed legislation that could ensure that such a scandal does not happen again and also to protect investors from the loss of their money. Introduction Enron was among the leading energy and service companies in the world.

The company was based in Texas, in the United States of America. The company was involved in various businesses such as wholesale businesses that involved the marketing of physical commodities and risk management financial services. The company also conducted a retail business where it could offer outsourcing solutions in energy and facility management to customers in the commercial and industrial sectors worldwide.

Some of the assets dealt with include Portland's general electricity, pipelines, and distribution operations. Before the company was declared bankrupt at the end of 2001, it had about 22,000 employees, and its products such as natural gas, pulp, and paper could release revenue totaling to $101 each year. The companies remained under good performance for a period of six years until the end of 2001 when a scandal called Enron Scandal began. This scandal was after a realization that the financial position that was being reported was sustained by significantly institutionalized and well-planned accounting fraud.

Since then Enron has been known for determining corporate fraud and financial dishonesty.


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